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324     PART II       Transaction Cycles and Business Processes

                         Islands of Technology
                         Islands of technology describes an environment in which modern automation exists in the form of islands
                         that stand alone within the traditional setting. The islands employ computer numerical controlled (CNC)
                         machines that can perform multiple operations with little human involvement. CNC machines contain
                         computer programs for all the parts that are manufactured by the machine. Under a CNC configuration,
                         humans still set up the machines. A particularly important benefit of CNC technology is, however, that
                         little setup time (and cost) is needed to change from one operation to another.
                         Computer-Integrated Manufacturing

                         Computer-integrated manufacturing (CIM) is a completely automated environment with the objective
                         of eliminating non–value-added activities. A CIM facility makes use of group technology cells composed
                         of various types of CNC machines to produce an entire part from start to finish in one location. In addi-
                         tion to CNC machines, the process employs automated storage and retrieval systems and robotics. CIM
                         supports flexible manufacturing by allowing faster development of high-quality products, shorter produc-
                         tion cycles, reduced production costs, and faster delivery times. Figure 7-17 depicts a CIM environment
                         and shows the relationship between various technologies employed.


                         AUTOMATED STORAGE AND RETRIEVAL SYSTEMS (AS/RS). Many firms have increased
                         productivity and profitability by replacing traditional forklifts and their human operators with automated
                         storage and retrieval systems (AS/RS). AS/RS are computer-controlled conveyor systems that carry raw
                         materials from stores to the shop floor and finished products to the warehouse. The operational advan-
                         tages of AS/RS technology over manual systems include reduced errors, improved inventory control, and
                         lower storage costs.

                         ROBOTICS. Manufacturing robots are programmed to perform specific actions over and over with a
                         high degree of precision and are widely used in factories to perform jobs such as welding and riveting.
                         They are also useful in hazardous environments or for performing dangerous and monotonous tasks that
                         are prone to causing accidents.






                           FI GU RE
                              7-17    COMPUTER-INTEGRATED MANUFACTURING SYSTEM

                              Design Phase                             Execution Phase
                               Engineering                        Manufacturing Work Centers

                                                                                        Raw
                                                                  CNC       AS/RS                   Stores
                                                                                       Materials

                                      CAD
                              Work               Design          Human      AS/RS      Finished    Warehouse
                             Station  Software  Database         Labor                 Goods
                                                                      CELL

                                                 CAM             Multiple   AS/RS       Raw         Stores
                                                Software          CNC                  Materials


                                                                                       Finished
                                                                 Robotics   AS/RS                  Warehouse
                                                                                       Goods
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